SHUI ON LAND(HK:00272)2022-04-21 08:31Financial Performance - Total revenue for 2021 reached RMB 17,555 million, a significant increase from RMB 4,597 million in 2020, representing a growth of 282%[8] - The company reported a core profit of RMB 1,608 million for 2021, compared to RMB 1,446 million in 2020, indicating a year-on-year increase of 11.2%[8] - The company reported a significant increase in gross profit to RMB 7,173 million in 2021, compared to RMB 2,350 million in 2020, marking a growth of 205%[8] - For the fiscal year 2021, the group's revenue grew by 282% to RMB 17.555 billion, and the profit attributable to shareholders was RMB 1.636 billion, reversing the losses from 2020[26] - The company's revenue for 2021 was RMB 17.555 billion, representing a 282% increase compared to the previous year, primarily due to a significant rise in property sales[51] - Property sales revenue surged 840% year-on-year to RMB 13.638 billion, driven by contributions from projects such as Shanghai Taipingqiao and Wuhan Tiandi Yunting Phase II[51] - The annual profit for 2021 was RMB 2.208 billion, a significant recovery from a loss of RMB 233 million in 2020[90] - The board proposed a final dividend of HKD 0.084 per share for the year, with total dividends for 2021 amounting to HKD 0.12 per share, compared to no dividends in 2020[51] Asset Management and Development - As of December 31, 2021, the total land reserve amounted to 9.4 million square meters, with 7 million square meters designated for rental and sale[9] - The total assets of the group were RMB 113,896 million, a slight decrease from RMB 115,475 million in 2020[9] - The group managed to maintain a total cash balance of RMB 17,284 million, an increase from RMB 15,796 million in the previous year[9] - The company's flagship project "Shanghai Xintiandi" is part of the company's extensive portfolio, which includes a total managed office and commercial property area of 1.72 million square meters in Shanghai[7] - The total construction area of the Tai Ping Qiao project is 1.2 million square meters, located in Huangpu District, Shanghai, and includes commercial shops, office buildings, residential, and cultural facilities[41] - The total construction area of the Hongqiao Tiandi project is 335,000 square meters, strategically located in the Hongqiao commercial core area, serving as a major commercial, cultural, and leisure landmark[42] - The total construction area of the Pacific New World Commercial Center in Shanghai is 276,000 square meters, with a planned completion date between 2022 and 2024, and the company holds a 25% stake in this project[64] Financial Ratios and Debt Management - The net asset liability ratio improved to 30% in 2021, down from 45% in 2020, reflecting a stronger financial position[9] - The net debt-to-equity ratio improved from 45% at the end of 2020 to 30% by December 31, 2021, indicating a more robust financial position[26] - The company's net debt as of December 31, 2021, was RMB 145.79 billion, with total equity of RMB 491.78 billion, resulting in a net debt-to-equity ratio of 30%[95] - The group had cash and bank deposits totaling RMB 172.84 billion as of December 31, 2021, compared to RMB 157.96 billion on December 31, 2020[95] Sustainability Initiatives - The company has committed to sustainable development, becoming the first Chinese real estate company to participate in the Science Based Targets initiative (SBTi) and issuing its first sustainable development-linked bonds[27] - The company aims to align its development strategy with China's urban sustainable development goals, focusing on urban renewal projects in metropolitan areas[28] - The company aims to achieve carbon neutrality and reduce waste across its property portfolio[163] - The company has implemented a risk management framework to identify and manage significant risks affecting its performance[161] - The company launched a green menu program for its dining tenants across its property portfolio, utilizing 100% renewable energy at Wuhan Tiandi Yifang Shopping Center[164] - The company achieved a sustainable development rating of 71.71 (AA-) from the Hong Kong Quality Assurance Agency (HKQAA) and an A rating (5.4) from MSCI ESG ratings[165] Corporate Governance - The board of directors consists of ten members, including four executive directors and six independent non-executive directors[104] - The company has established five board committees: Audit and Risk Committee, Remuneration Committee, Nomination Committee, Sustainability Committee, and Strategy Committee[103] - The company has committed to enhancing corporate governance practices and has adopted various procedures and documents to comply with the Corporate Governance Code[102] - The company has maintained compliance with all applicable provisions of the Corporate Governance Code, with some deviations noted in the Nomination Committee section[102] - The company has established a written procedure for directors to seek independent professional advice at the company's expense[103] Employee Engagement and Diversity - As of December 31, 2021, 47% of the group's employees, including senior management, were women[108] - The company was included in the 2022 Bloomberg Gender-Equality Index, which tracks the performance of publicly listed companies committed to gender data transparency[108] - Gender ratio among employees is 53% male and 47% female[200] - Average employee development training hours is 43.41[200] - 99.8% of female employees participated in training programs[200] Market and Economic Context - In 2021, China's GDP grew by 8.1%, with real estate development investment increasing by 4.4% year-on-year, despite credit tightening in the sector[28] - The real estate sector is expected to shift towards rational business models, reducing reliance on high leverage and focusing on sustainability[101] - The Chinese government has introduced strategies like "dual circulation" and "common prosperity" to ensure sustainable and high-quality development amid economic challenges[101] Risk Management - The company has established a risk management framework tailored to its business model to manage operational risks[156] - Identified risks are continuously assessed, with priority given to significant risks in the risk management plan[159] - The company has implemented risk response measures, categorizing them into acceptance and reduction strategies based on risk significance[159]